Soldato
Forgot to mention in the post I'll be moving back into the property, not selling.
Well put argument
As with Shikkaka above... My days as a landlord are to come to an end.
The wife and I have decided after much deliberation to eventually move back into our property up in Norfolk. We originally planned to sell it and use the equity to put towards a new property but the way interest rates are going at the moment we decided to hold off on that plan.
Once the tenants are out we plan to do some renovations and eventually move back into it. Having owned the property since 2011, there's a few things i would definitely like to do.
The wife and I have decided after much deliberation to eventually move back into our property up in Norfolk. We originally planned to sell it and use the equity to put towards a new property but the way interest rates are going at the moment we decided to hold off on that plan.
Once the tenants are out we plan to do some renovations and eventually move back into it. Having owned the property since 2011, there's a few things i would definitely like to do.
Soldato
Well it's true, what's the problem, I've been hoping for a housing market collapse for years so my kids could afford somewhere but all they've done is gone up 10% a year.Well put argument
Soldato
Sorry my bad
lol ok buddy
Soldato
Look I want them to go down, but there's so much at stake here, the amount of debt banks have lent out is huge. Just look back at the financial crisis, one minute people are a low risk, the next minute high.
If house prices drop it's a vicious circle the banks count the trillion of debt as an asset, it is given a rating, if house prices go up that rating goes up, if prices drop or unemployment increases the rating goes down.
Badly rated loans are a massive problem and stop the banks lending more to business which cause problems for the whole economy.
The economy relies on the banks lending money at an affordable rate.
Man of Honour
I'll confess I haven't read this thread but after comments on another Social Media site wondered how many people thought the same about this incident:
A tenant paid no rent at all during his 3 year stay, moved out and with the money he saved he bought a house, or the deposit on a house.
Several people thought it was a good thing that he did and landlords should get a proper job and not get money off people for living in their property.
I'm just wondering how many on OCUK feel like this and robbing a Landlord of money is justified?
I personally know two people with normal jobs who both had an extra property and rented it out with both of them ending up in massive debt because of non payers.
Sorry if I've derailed.
A tenant paid no rent at all during his 3 year stay, moved out and with the money he saved he bought a house, or the deposit on a house.
Several people thought it was a good thing that he did and landlords should get a proper job and not get money off people for living in their property.
I'm just wondering how many on OCUK feel like this and robbing a Landlord of money is justified?
I personally know two people with normal jobs who both had an extra property and rented it out with both of them ending up in massive debt because of non payers.
Sorry if I've derailed.
The Tories changed tax regs so that small landlords couldn't offset interest repayments against taxable profits - they gave large/wealthy landlords a loophole.
Large/wealthy landlords can also buy through a ltd co, and pay corporation tax on profits (at 20%) rather than income tax (at up to 50%).
Properties are likely to be bought up by wealthy investors.
Sounds like he showed some entrepreneurial spirit championed by the tories xD
All I have to say is wait until these properties are out of the hands of private landlords, some of these people are short sighted and cannot see the bigger picture at all.
If you take away small time private landlords then who will control the properties? The local council? How good are they at managing issues, they can't even fix potholes or arrange for bin collections on time.
Suddenly having no private landlords will not lead to house prices becoming 25-35% cheaper, what will happen is councils will subcontract out to Ltd companies that will let the properties out to tenants. Guess who owns the Ltd companies- Rich investors. It will basically become a monopoly and rents will not be cheaper.
Either way the tenant is probably not going to be able to buy the property, at least with private landlords you can have more of a 1 to 1 as you'll have your landlord's number, not massive entity with no face. Don't get me wrong there are some awful landlords out there but I've heard and had some good one's as well that let you do whatever to the property in terms of decoration etc. Gas safe engineer or electrician out immediately if there are any issues.
Also current interest rates on BTL properties make BTL not viable for many even if they have enough for a 25% deposit. So if landlords were the issue to the housing crisis then why haven't house prices fallen off a cliff like people thought they would, landlords have sold up so where is this significant decline?
All this is going to do is either lead to properties going from small time landlords to big companies or if someone does buy these properties it will mean less choice for people to rent.
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I'm curious how they got away with that for 3 years?! The court process doesn't take that long and they'd have been served with an eviction notice!
Whether it's justified depends on the circumstances, some landlords really are deserving of non-payment and it's sometimes the only way to get a problem sorted. Although that route can also have the reverse effect, if someone is not paying me it's not going to make me likely to help.
Not paying for 3 years though makes me think the tenant was very undesirable and I feel sorry for the landlord.
Even if the particular person claims it was because of a problem the landlord didn't resolve, often it can be breach of contract and you could just end it and move to a different property. For example if there was no heating and hot water and the problem was not fixed in a reasonable time there would be a breach of contract. But even in that instance I'd still pay as I'd want to fulfill my side of the contract.
I'm just typing as it comes to me, but the person mentioned sounds like a scrote.
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Soldato
Who do you think does?What's that got to do with a drop of 18% over 16 months? Do you think banks control the price someone pays for a property?
e: I guess there is an indirect correlation with interest rates to an extent.
Man of Honour
I watched "The Bailiffs Are Coming" all the time so I can believe 3 years easily.
What I don't get is there must be something missing from the story.
The Landlords apply to the Courts/Magistrates (whatever), they get permission for Bailiffs to go and retrieve what money they can so as far as I know bad paying tenants don't get away with it unless they can't be found.
If this bloke has put money down on a house then Bailiffs will find him.
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Yeah as you say there's definitely something missing from the story. Maybe I'm naive but I find it hard to believe that someone could just kick back and live their life for 3 years without paying one penny of rent and then move out and buy a house like nothing happened with zero repercussions. Once the courts and bailiffs become involved they don't just disappear.
@SexyGreyFox if that social media site is public is there a link? Or does it not really give details? The other thing is it could have been embellished, a lot of people thrive on internet attention so say anything for attention.
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Man of Honour
I think something has been missed out however my post is about the people who think doing that is OK because they think Landlords are preying on tenants.
Soldato
That doesn't make any sense. How can someone not pay their rent and be allowed to use the money saved as a deposit on a house? All the landlord has to do is go to the high court and have him declared bankrupt and former tenant will lose the property which will get sold at auction with the net proceeds going to the landlord.